Types of Coverage and Their Impact on Cost
Car insurance coverage varies widely, and the type of coverage you choose can significantly impact your insurance costs. Understanding the different types of coverage available and their potential impact on your budget is essential for making informed decisions about your insurance plan.
Liability Coverage
Liability coverage is the most basic type of car insurance and is required by law in most states. It protects you from financial responsibility if you cause an accident and injure someone or damage their property. The limits of your liability coverage determine the maximum amount your insurance company will pay for damages.
Collision Coverage
Collision coverage pays for repairs to your vehicle if you are involved in an accident, regardless of who is at fault. The amount of coverage you choose will determine the maximum amount your insurance company will pay for repairs. Collision coverage is optional but is recommended if you have a newer or expensive vehicle.
